Salient to Investors: Expect the market to consolidate before the next QE-driven euphoric market advance. The market does not necessarily react immediately to liquidity-driven catalysts. Stocks traded higher for nine days after Lehman collapsed before the sell off began. Stocks initially trade lower once they receive QE from the Fed. A slowing global economy,
READ MORE... →Salient to Investors: Ho-Fung Hung at Johns Hopkins University said the central government appears to be paralyzed and the situation is looking increasingly dire. Direct foreign investment has fallen for 9 months out of the past 10, and industrial output is rising at the slowest rate in three years. FedEx warned that China’s
READ MORE... →Salient to Investors: Brian Belski at BMO Capital says: Target S&P500 at 1425 year-end so taking money off table, sees short-term volatility due to noisy election cycle. Sees no correction or bear market but a pullback near term to 1400. Target S&P500 of 1575 for 2013. Longer term bottom in housing in place and this stabilisation is good
READ MORE... →Salient to Investors: Prior to 1965, dimes and quarters were made primarily of silver. Prior to 1982, pennies were composed of 95% copper. Nickels are 25% nickel and 75% copper. At today’s prices for copper and nickel, a dime is worth almost seven cents, though it is illegal to
READ MORE... →Salient to Investors: Germany advanced legislation that would force high-speed trading firms to register with the government and limit their ability to rapidly place and cancel orders. The European Commission agreed on even broader rules for all of the EU if governments also give their approval. Celent estimates high-speed trading accounts for 30
READ MORE... →Salient to Investors: Matthew Sherwood at Perpetual Investments said investors are finally realizing that liquidity injections from central banks do nothing to address the structural issues. Read the full article at http://www.bloomberg.com/news/2012-09-26/asian-stocks-fall-on-investor-concern-on-stimulus-effect.html
READ MORE... →Salient to Investors: Shanghai Composite Index is down 9.9 percent this quarter, down 8.9 percent in 2012, is the worst performer among global markets after Cyprus, and sells for 9.3 times estimated earnings versus an average of 18 since 2006. Wang Zheng at Jingxi Investment Mgmt said the market has no confidence in China’s old growth model of investment
READ MORE... →Salient to Investors: Goya Nakao at Sompo Japan Nipponkoa Asset Mgmt said monetary easing won’t create demand, and catalysts for a market rebound are missing – there’s some improvement in sentiment in Europe, the U.S. economy is weakening, and the timing of a rebound in China is being pushed back. The
READ MORE... →Salient to Investors: Gold is set for its biggest quarterly rise since Q2 2010. Sun Yonggang at Everbright Futures said the poor economic backdrop will keep up global stimulus measures which benefits gold – the next bad news or more stimulus will take it past $1,800. Kazakhstan expanded gold reserves for a 13th month in August, South Korea
READ MORE... →Saient Points: Charles Plosser at FRB of Philadelphia said QE3 won’t boost growth or hiring and may jeopardize the Fed’s credibility, which may be forced into selling assets in the open market when it needs to reduce stimulus. Central banks can’t effectively target employment levels the same way they can guide inflation rates
READ MORE... →